Stocks are pointed slightly higher Friday, with a few minutes to go before the report hits. S&P 500 futures are up 0.1% while Dow industrials futures are up 0.2%.

Other markets are little changed. The yield on the 10-year Treasury note is up 0.004 percentage point at 2.232%. Gold prices rose 0.05%. The U.S. dollar is little changed versus the yen and euro.
– Ben Eisen

209, 000 JOBS ADDED, UNEMPLOYMENT at 4.3%

U.S. employers added a seasonally adjusted 209,000 jobs in July and unemployment was at 4.3%.

The number is above expectations. Economists surveyed by the Journal expect to see 180,000 jobs added and expected the downtick in unemployment.

Erik Holm

Average Hourly Earnings Rose 2.5% in July From a Year Earlier

Average hourly earnings last month rose 2.5% from a year earlier, according to the Labor Department. That’s right in line with expectations.

On the month, average hourly earnings for private-sector workers increased 9 cents to $26.36 an hour. It was the largest monthly increase since October.

Investors and economists are laser focused on pay gains with the labor market tightening to near full employment. July’s reading shows more of the same, with July’s year-over-year wage growth reading near where it has been for the past year.

Chris Dieterich

Labor Force Participation Rate Rises to 62.9%

The labor force participation rate, a measure of all the workers who could be working that either are working or looking for work, rose to 62.9% in July from 62.8% in June. In July 2016, it was 62.8%.

Higher is better, because it shows more people in the work force. During the dot-com boom, it was around 67%. During the housing bubble, it was 66%. The last time the rate was at these levels was the 1970s.

Paul Vigna

Unemployment Falls to 4.3%, 16-Year Low

The jobless rate fell by a tenth of percentage point to 4.3%, matching May as the lowest level of unemployment in 16 years.

It declined despite an expansion in the labor force. That suggests the growing labor market is slowly drawing more Americans off the sidelines and into the job search, and that employers are hiring many of them.

The drop could also nudge the Federal Reserve closer to raising interest rates. Unemployment is already below the Fed’s projection for long-run joblessness of between 4.5% and 4.8%.

Treasury Yields Up, Gold Down

Gold futures are down 0.5%. The WSJ Dollar Index is up 0.3% as the yen and euro fall relative to the greenback. The yield on the 10-year Treasury note is up 0.02 percentage point at 2.25%.

The stock market reaction somewhat more muted, with futures inching higher. S&P 500 futures are up 0.2% and Dow futures are up 0.3%.

Trade Deficit Narrowest Since October

At the same time as the jobs report hit, the Commerce Department released separate data on the U.S. trade deficit. It narrowed 5.9% in June to the smallest gap since October.

Exports rose to the highest seasonally adjusted level since December 2014.

The data suggests the recent weakening of the U.S. dollar could be helping exporters by making American products relatively more affordable overseas. Exports slumped for most of last year during a period when the dollar rose against many other global currencies.

Eric Morath

Bars, Restaurants Hired Briskly in July

So who was hiring in July?

The sector that added the most jobs last month was the “food services and drinking places” category, which added 53,000 jobs.

Next was professional and business services, a broad catch-all category that includes everything from scientific research to temp jobs, which added 49,000 jobs. Within this category, administrative and waste services added 30,000 jobs, and temporary help services added 14,700 jobs.

“Manufacturing hiring is settling down: oil related capex hiring is pausing and autos are hitting the brakes. This offsets other gains,” said Andrew Zatlin of SouthBay Research. “That leaves services to drive the hiring, and it’s mostly positive. Healthcare hiring strengthened after the ACA repeal debacle. Temp hiring is also steady.”

Paul Vigna

July’s Jobs Report: ‘Near Perfect’

There’s lots to like in July’s jobs report.

Employers added 209,000 jobs last month, more than forecast. Wage growth rose 2.5% in July from a year earlier, not amazing but steady and right in line with expectations. Hours worked per week by private employees held steady at 34.5. The jobless rate fell by a tenth of percentage point to 4.3%, matching May as the lowest level of unemployment in 16 years.

“Payrolls came in well above expectations, with a solid increase in both [average hourly earnings] and the workweek. On first glance, nothing sticks out as a negative.”

Chris Dieterich

OVERALL

The jobless rate fell by a tenth of percentage point to 4.3%, matching May as the lowest level of unemployment in 16 years.

It declined despite an expansion in the labor force. That suggests the growing labor market is slowly drawing more Americans off the sidelines and into the job search, and that employers are hiring many of them.

The drop could also nudge the Federal Reserve closer to raising interest rates. Unemployment is already below the Fed’s projection for long-run joblessness of between 4.5% and 4.8%.

The labor force participation rate, a measure of all the workers who could be working that either are working or looking for work, rose to 62.9% in July from 62.8% in June. In July 2016, it was 62.8%.

Higher is better, because it shows more people in the work force. During the dot-com boom, it was around 67%. During the housing bubble, it was 66%. The last time the rate was at these levels was the 1970s.

Excellent Jobs Numbers just released – and I have only just begun. Many job stifling regulations continue to fall. Movement back to USA!

If you would like to receive Breaking News text alerts on a smartphone or tablet, download the DML APP which is completely FREE and easy to use. Go to the Google Play Store or the IOS App Store and search for DML APP. Be sure to keep the app’s notifications setting on. Another way to receive alerts is to text to 40404 the following message: follow @realdennislynch (be sure to put a space between the word follow and the @ symbol).

To see more stories like this, sign up below for Dennis Michael Lynch’s email newsletter.